U.S. stock futures were largely steady Wednesday evening after both the S&P 500 and Nasdaq closed at fresh record highs, buoyed by a sharp rally in Oracle shares and easing inflation pressures.
Investors are now turning their attention to Thursday’s consumer price index report as markets firm up expectations for a Federal Reserve rate cut next week.
Soft PPI bolsters Fed cut hopes; key CPI awaited In the regular session, the S&P 500 gained 0.3% to notch a fresh record close, while the NASDAQ Composite rose marginally to reach another record closing peak. The Dow Jones Industrial Average ended 0.5% lower.
The standout performance came from Oracle Corporation (NYSE:ORCL), which surged 36% on Wednesday on robust demand for its cloud infrastructure and artificial intelligence services.
The tech sector’s strength echoed across AI-sensitive names, including chipmakers like Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO).
Further bolstering the rally was an unexpected easing in producer price inflation.
August’s producer price index fell 0.1% month-on-month and rose 2.6% year-on-year – well below forecasts – providing fresh evidence of cooling wholesale price pressures.
The data strengthened the case for the Fed to initiate a rate-cut cycle, starting possibly with a quarter-point reduction at its September 17 meeting. The more widely-watched consumer price index (CPI) is due on Thursday.
Economists expect headline inflation to rise 0.3% from the prior month and 2.9% from a year earlier. Core CPI, which excludes food and energy, is forecast to rise 0.2% month-on-month and 3.2% year-on-year.
Synopsys plunges after earnings miss; Kroger results ahead Synopsys (NASDAQ:SNPS) shares plunged 36% on Wednesday, nearly wiping out all of the gains the stock had recorded so far in 2025.
The slide followed the company’s fiscal third-quarter report, which revealed revenue falling short of Wall Street estimates, largely due to underperformance in its Design IP segment.
Export restrictions disrupting business in China, combined with setbacks from a major foundry customer, weighed heavily on the results.
Looking ahead to Thursday, retail heavyweight Kroger Company (NYSE:KR) and software giant Adobe (NASDAQ:ADBE) are both scheduled to report their latest quarterly results.
